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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT O F THE UNITED STATES

Dallas, Texas, July 13, 1961

PRELIMINARY ANNOUNCEMENT
TREASURY FINANCING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted below a press statement issued today by the Treasury Department in regard to
current financing:
Treasury to refund $12.5 billion of securities maturing August 1 to October 1,
and to raise $3.5 billion in cash
“The Treasury is offering holders of Treasury securities maturing from August 1, 1961,
through October 1, 1961, aggregating $12,536 million, the right to exchange them for any of the
following securities:
3 Vi percent ISV2 month Treasury notes to be dated August 1, 1961, and to mature
November 15, 1962, at par: or

33/4 p ercen t 3-year T reasu ry notes to be dated August 1, 1961, and to mature
August 15, 1964, at par: or
3 78 percent Treasury Bonds of 1968, dated June 23, 1960, maturing M ay 15, 1968,
/
of which $1,390 million are outstanding, at 99.375.
‘T h e additional amounts of 3 Vs percent Treasury bonds maturing M ay 15, 1968, included
in this exchange offering, will be issued at a price of 99.375, to yield 3.98 percent to maturity.
“ Cash subscriptions for the securities listed above will not be received.
“The maturing issues eligible for exchange are as follows:
$7,829 million of 3 Vs percent Treasury Certificates of Indebtedness of Series C-1961,
dated August 15, 1960, maturing August 1, 1961: and
$2,136 million of 4 percent Treasury Notes of Series A-1961, dated August 1, 1957,
maturing August 1, 1961: and
$2,239 million of 2 % percent Treasury Bonds of 1961, dated November 9, 1953, and
maturing September 15, 1961: and
$332 million of IV2 percent Treasury Notes of Series EO-1961, dated October 1, 1956,
due October 1, 1961
“The subscription books will be open only on July 17 through July 19 for the receipt of
subscriptions. Subscriptions for any issue addressed to a Federal Reserve Bank or Branch, or to

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the office of the Treasurer o f the United States, and placed in the mail before midnight July 19,
will be considered as timely. The securities will be delivered August 1, 1961, and will be made
available in registered form, as well as bearer form.
TAX ANTICIPATION BILLS

“In addition to the exchange privileges open to the holders of the maturing Treasury
securities, the Treasury will also receive tenders on Thursday, July 20, 1961, for approximately
$3.5 billion of 240-day Tax Anticipation Treasury Bills to be dated July 26, 1961, and to
mature March 23, 1962. Qualified depositaries may make payment for the bills by credit in their
Treasury T ax and Loan accounts.
INTEREST PAYMENT DATES

“Interest on the new 3 Vi percent 15Vi-month Treasury note will be paid on November 15,
1961, and semiannually on M ay 15 and November 15, 1962. Interest on the 3 Vi percent 3-year
Treasury note will be payable semiannually on February 15 and August 15. Interest on the
3 7 percent bonds of 1968 is payable semiannually M ay 15 and November 15.
/s
“Exchanges of the 3 Vs percent Certificates of Indebtedness and 4 percent Treasury Notes
maturing August 1, 1961, may be made for a like face amount of either the 3 Vi percent Treasury
notes maturing November 15, 1962, or the 3 Vi percent Treasury notes maturing August 15, 1964.
Coupons dated August 1, 1961, on the maturing 3 Vs percent certificates and 4 percent Treasury
notes exchanged for the new Treasury notes should be detached by holders and cashed when due.
“Exchanges o f the securities maturing August 1, 1961, for additional amounts of the 3Vs
percent Treasury bonds maturing M ay 15, 1968, will be made with interest adjustments as of
August 1, 1961. Coupons dated August 1, 1961, on the maturing certificates and notes exchanged,
must be attached to the certificates and notes when surrendered. Adjustments will be made with
the subscribers to the 3 Vs percent Treasury Bonds of 1968, as follows:
CHARGES PER $1,000
CREDITS PER $1,000
Amount
Discount
Accrued Interest
on
Due on
to 8/1/61
Maturing
on
3 % Percent
Bond
Issue
3 % Percent Bond

Maturing Issue
Exchanged for
3 % Percent Bond

3 Vs percent certificate
4 percent note

$15,625
20.00

$6.25
6.25

$8.21332
8.21332

Difference to Be
Paid to
Subscriber

$13.66168
18.03668

EXCHANGES OF 2 % PERCENT TREASURY BONDS

“The maturing 2 Vi percent Treasury bonds due September 15, 1961, may be exchanged for
a like face amount of the new 3 Vi percent Treasury notes due November 15, 1962, or the 3 Vi
percent Treasury notes due August 15, 1964, with interest adjustments as o f August 1, 1961.
Exchanges of the maturing 2 Vi percent Treasury bonds due September 15, 1961, also may be
made for a like face amount o f the additional 3 Vs percent Treasury bonds due M ay 15, 1968,
which will be issued at 99.375, with interest adjustments as of August 1, 1961.
“Coupons dated September 15, 1961, must be attached to the 2 Vi percent Treasury Bonds
of 1961 in coupon form when surrendered. Adjustments with the holders who exchange their
2 Vi percent bonds will be made as follows:

2 % Percent Bonds
Exchanged for

3 Vi percent note 1 1 /1 5 /6 2
3 Vi percent note 8 /1 5 /6 4
3 7 percent bonds of 1968
/s

CREDITS PER $1,000
Accrued
Interest
Discount
on 2 % Percent
on 3 %
Bonds to
Percent
8/1/61
Bond

$10.38723
10.38723
10.38723

CHARGES PER
$1,000
Accrued Interest
to 8/1/61 on
3 % Percent
Bond

—

—

—

—

$6.25

$8.21332

Amount to Be
Paid to
Subscriber

$10.38723
10.38723
8.42391

EXCHANGES OF 1 V i PERCENT TREASURY NOTES

“Holders of the IVz percent Treasury Notes, Series EO-1961, maturing October 1, 1961,
may exchange them for a like face amount of the new 3Va percent Treasury notes maturing
November 15, 1962, the 3 % percent Treasury notes maturing August 15, 1964, or additional
3 % percent Treasury bonds due M ay 15, 1968, which will be offered at 99.375. Exchanges of
the IV 2 percent Treasury Notes Series EO-1961, will be made with interest adjustments as o f
September 1, 1961.
“Coupons dated October 1, 1961, must be attached to the IV 2 percent Treasury notes when
surrendered. Adjustments with the holders who exchange their 1V2 percent Treasury notes will
be made as follows:

1 Vi Portent Treasury
Note Exchanged for

3Va percent note 1 1 /1 5 /6 2
3 3 percent note 8 /1 5 /6 4
A
3 % percent bond of 1968

CREDITS PER $1,000
Accrued Interest
on 1 Vi Percent Discount on
Note to
3 % Percent
9/1/61
Bond

$6.27049
6.27049
6.27049

—
—

$6.25

CHARGES PER

$ 1,000
Accrued Interest
to 9/1/61

$ 2.73777
3.18261
11.47758

Difference to Be
Paid to
Subscriber

$3.53272
3.08788
1.04291

“An announcement concerning the issuance of $3.5 billion of 240-day Treasury Tax Antici­
pation Bills is also being released at this time.”
Tenders for the offering of Tax Anticipation Treasury Bills will be mailed today. Official circulars
and subscription forms for the offerings of Treasury notes and Treasury bonds will be mailed to reach
all banking institutions by Monday, July 17.
Yours very truly,
Watrous H. Irons
President


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102